July 5th, 2011 10:40 PM by Eric Fang
Unless if you know the market, it's easier to makemoney in the stock market if you follow the trend.Otherwise, you will lose the money.
It's the same for the mortgage rates. If we know therate is going down, we can follow the trend and floatthe rates for some time and lock a lower rate.And if we know the trend of the rates is going higher,then we will lock the rate.
For the last a few months of PF loans, I think I willhave one loan might fail(except those denied loansfor whatever reasons). The rate we locked was 2.625%for 5/1ARM with high-balance and LTV 75%. The rateexpired because of the lender/borrower slow response and some issues related to the appraisal.
And I urged the borrower that ARM rate will go higherand got me the last piece of documents so that we can re-lock the same rate and close the deal.
And for some reason, I got the document three weeks later.And it might be very hard to get the similar rate now.And the reason is the "trend" changed and we shouldfollow the trend.
We did have several other loans with rate expired, andwe saved them because we worked together to get it doneat the last minute(Jeff, Micahel and Ram, am I right).And I got the documents even when they were in India,or on the vacation out of the states. And we all know we have to work it together, othwerwise we will not getthose rates, because the "ARM trend" changed.